According to the audit group PricewaterhouseCoopers, house prices are still at record levels when set against the inheritance tax threshold. They have warned that despite the recent slowdown in the housing market, which could reduce inheritance tax in the short term, the rise could reaffirm itself in the long term.
The group believe that the risk could be reduced if the chancellor continues to increase the threshold by more than retail price inflation over the next three years.
Our view
Inheritance Tax is the only tax that is legally avoidable in the UK. To reduce this tax bill, even to potentially get it to zero, you need professional advice.
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